Uncertain global economy

The MSCI global index lost 0.41% to a record low since mid-March, while the US S&P 500 index and Nasdaq index fell 1.5% and 2% respectively. A similar trend played out across European stock markets, with France’s CAC 40 index down 1.39% and Britain’s FTSE index down 0.52%.

In currency markets, according to Reuters, the yuan hit a seven-month low and is on track to experience its worst week since 2019, as the Shanghai blockade takes a toll on the economy. economic growth.

The dollar price fell 0.25% against the Japanese yen (to $1 to 128 yen) although the euro fell 0.29% against the greenback (to 1 euro to 1.0805).

Delivery workers wait to receive orders outside a store in Shanghai, China, on April 20 Photo: REUTERS

Meanwhile, the price of Brent oil and WTI futures delivery at some point fell to the threshold of 107.86 USD/barrel and 103.30 USD/barrel, after the Chairman of the US Federal Reserve (FED) Jerome Powell announced that Jerome Powell rate hike of 50 basis points will be discussed in the May meeting.

On the same day, International Monetary Fund (IMF) Director Kristalina Georgieva warned that China’s prolonged slow growth could have a significant impact on the global economy.

However, Ms. Georgieva said fortunately that China “still has policy space” to make appropriate adjustments to improve the situation.

In Shanghai, according to radio CNBC On April 21, foreign businesses still have difficulty bringing workers back to factories after nearly a month of blockade, even when restrictive measures have been eased.

Many US and European businesses claim that they are facing many challenges related to logistics and human resources, especially when more than 50% of their employees are still unable to return to work because of the blockade order.

In order to boost the economy that is slowing down because of Covid-19, the Governor of the People’s Bank of China (PBoC) Yi Gang on April 22 pledged to maintain appropriate policies, with measures such as supporting small businesses. and areas affected by the pandemic.

Meanwhile, US Treasury Secretary Janet Yellen called for reforms to move towards a “resilient” and “stable” global supply chain. According to Minister Yellen, Covid-19 and the Russia-Ukraine conflict have exposed the “unstable” situation of the current supply chain and this is a threat in the long term to economies, including America.